Copper rebounds after three weeks of declines

China’s plans to send a delegation to the U.S. later in August for trade talks has helped to relieve some trade concerns that were pulling down pricing for copper, despite reports that U.S. President Trump has said he doesn't expect much from the talks.

According to a Bloomberg article Monday, Aug. 20, copper pricing rebounded from three weeks of declines as trade tensions softened and orders pointed to stronger demand for the metal. The article says Monday orders from Singapore and Taiwan to withdraw copper from London Metal Exchange (LME) warehouses “climbed the most since 2015. Cancelled warrants increased by 47 percent to 36,050 tons.

Turkey’s financial issues contributed to the decline in metals pricing that led the LMEX Index to reach a one-year low the week beginning Aug. 13.

As of the start of the third full week of August, industrial metals in general were buoyed by an increase in the yuan and by an improved outlook for China’s economy. Ole Hansen, head of commodity strategy at Saxo Bank A/S told Bloomberg, “Dollar strength drove the recent sell-off, and with those gains now moderating, industrial metals have managed to catch a bid.”

“Copper for three-month delivery rose 1.1 percent to settle at $5,991.50 a metric ton at 5:52 p.m. in London, after trading as high as $6,033,” Bloomberg reports. This was after the metal “fell into a bear market” Aug. 15, closing at a more-than-one-year low.